The present study was conducted in Tungabhadra command area (TCA) of Karnataka. A sample of 60 farmers growing paddy under organic farming and another 60 farmers growing paddy under inorganic farming spread over TCA were selected randomly for the present study. Data were elicited for the agriculture year 2011-12 through survey method. The tabular presentation and budgeting techniques were employed to analyze the data so collected. The per acre cost of inputs involved in organic paddy farm included FYM (`1421.23) followed by biofertilizers (` 560.28), biopesticides (` 419.59) and seeds (` 293.43) while in inorganic paddy farm it was on chemical fertilizers (`  4509.01), followed by plant protection chemicals (` 3136.69), FYM (` 738.37) and seeds (` 513.96). The average cost of cultivation per acre of paddy on organic farm was ` 28585.61 as against ` 31697.15 on inorganic farms. This difference in cost of cultivation was due to the higher cost incurred on chemical fertilizers as well as on plant protection chemicals by inorganic paddy farmers. The per acre average yield of paddy on organic farm was, 26.96 quintals of main product and 2.39 tonnes of by product as compared to 32.93 quintals of main product and 3.78 tonnes of by product on inorganic farm. The average market price of  main product in organic paddy was ` 1786.34 per quintal and of by product was ` 833.17 per tonne while it was ` 1394.44 per quintal (main product) and ` 485.50 per tonne (by product) for inorganic paddy. The net return on organic paddy farm was ` 21256.70 and was ` 15643.29 on inorganic farms, the BC ratio was higher on organic farms (1.74) when compared to inorganic farms (1.49).